ACG 2021 Lecture Notes - Lecture 3: Treasury Stock, Net Income, Accounting Equation
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On December 31, 2016, the accounts inthe ledger of Monroe Entertainment Co. are listed below. Allaccounts have normal balances. At the beginning of the year,retained earning balance is $4,000.
Note Payable due 10/31/2018 | $ 10,000 |
Accounts Receivable | 6,000 |
Accumulated Depreciation- Equipment (Creditbalance) | 6,000 |
Dividends | 1,000 |
Cash | 16,000 |
Depreciation Expense | 5,000 |
Equipment | 12,000 |
Fees Earned | 50,000 |
Rent Expense | 6,000 |
Supplies | 2,000 |
Supplies Expense | 3,000 |
Wages Expense | 21,000 |
Wages Payable | 2,000 |
Q1. Generate the Income statement
Monroe Entertainment Company Income Statement | ||
For the Year Ended December 31, 2016 | ||
Revenues: | ||
S | ||
Total Revenue | ||
Expenses: | ||
Total Expenses: | ||
Net Income | $ |
Please generate Retained Earnings Statement based uponthe above information and net income youcalculated.
Monroe Entertainment Company
Retained Earnings Statement
For the Year Ended Dec 31, 2016
Retained Earnings at beginning of the year | $___________________ |
Net Income | _____________________ |
Less: Dividends | _____________________ |
Net Increase/(Decrease) in the end | ______________________ |
Retained Earnings at end of the year | $_____________________ |
Please generate Balance Sheet as of December 31, 2016.
Monroe Entertainment Company Balance Sheet | |||||
Dec 31, 2016 | |||||
Assets | Liabilities | ||||
$ | $ | ||||
Total Assets | $ | Total Liabilities and Shareholders’ Equity | $ |
Claire Corporation task and prepare the following:
An Income Statement
A Statement of Retained Earnings
A Balance Sheet
The Claire Corporation
Claire Corporation builds foundations for churches and grottos in Perugia, Italia. The following alphabetical list shows Claire’s account balances as of April 30, 2014:
Accounts Payable 3,900
Retained Earnings (4/1/14) 10000
Accounts receivable 10120
Revenue earned 17400
Cash 13760
Supplies 6500
Common Stock 30000
Supplies expenses 7200
Utilities expenses 420
Wages Expenses 8800
Dividends 7000
Equipment 27500
Notes Payable 20000
From the information provided above, prepare an Income Statement.
Claire Corporation |
Income Statement |
For the Month Ended April 30, 2014 |
|
From the information provided above, prepared a Statement of Retained Earnings for the Month Ended April 30, 2014.
Claire Corporation |
Statement of Retained Earnings |
For the Month Ended April 30, 2014 |
From the information provided above, prepare a Balance Sheet for April 30, 2014.
Claire Corporation | |||
Balance Sheet | |||
April 30, 2014 | |||
Assets | Liabilities | ||
$ | $ | ||
Total Liabilities | $ | ||
Shareholders’ Equity | |||
$ | |||
Total Shareholders’ Equity | $ | ||
Total Assets | $ | Total Liabilities and Shareholders’ Equity | $ |
Poel Corporation acquired all the voting stock of Sain Companyfor $500,000 on January 1, 2016 when Sain had Capital Stock of$300,000 and Retained Earnings of $150,000. Sain's assets andliabilities were faily valud except for the plant assets. Theentire cost-book differential is allocated to plany assets and isfully depreciated on a straight-line basis over a 10-yearperiod.
During 2016, Poel borrowed $25,000 on a short-termnon-interest-bearing note from Sain, and on December 31, 2016, Poelmailed a check to Sain to settle the note. Sain deposited the checkon January 5, 2017, but receipt of payment of the note was notreflected in Sain's December 31, 2016 balance sheet.
REQUIRED:
1. Short all preliminary computations (3 pts)
2. Complete all eliminating journal entries (12 pts)
3. Give all eliminating journal entires (5 pts)
4. Prepare all financial statements in good form:
Statement of Net Income (5 pts)
Statement of Retained Earnings (4 pts)
And a Balance Sheet (7 pts)
Poel | Sain | Eliminations- Debit | Eliminations- Credit | Consolidated | |
INCOME STATEMENT Sales | $500,000 | $400,000 | |||
Income from Sain | 135,000 | ||||
Cost of Sales | (350,000) | (200,000) | |||
Other expenses | (100,000) | (60,000) | |||
Net Income | 185,000 | 140,000 | |||
RETAINED EARNINGS: Retained Earnings 1/1 | $300,000 | $150,000 | |||
Add: Net Income | $185,000 | $140,000 | |||
Less: Dividends | (70,000) | ||||
Retained Earnings 12/31 | $485,000 | $220,000 | |||
BALANCE SHEET | |||||
Cash | $100,000 | $200,000 | |||
Note Receivable from Poel | 25,000 | ||||
Other Current Assets | 110,000 | 100,000 | |||
Plant Assets- net | 200,000 | 425,000 | |||
Investment in Sain | 565,000 | ||||
TOTAL ASSETS | 975,000 | 750,000 | |||
EQUITIES Liabilities | 290,000 | 230,000 | |||
Capital Stock | 200,000 | 300,000 | |||
Retained Earnings | 485,000 | 220,000 | |||
TOTAL EQUITIES | 975,000 | 750,000 |